Vehicle, Savings & Real Estate Trends Part 2

Vehicle Lending

Credit union new-auto loan balances rose 0.8% in February, stronger than the -0.1% decline set in February 2021, and rose 0.7% during the last 12 months, CUNA Mutual reported. On a seasonally-adjusted annualized basis, new-auto loan balances rose at a 5.9% pace in February, slightly above the 5% long-run average growth rate.

“The first quarter is typically the weakest quarter for credit union new-auto loan growth due to various seasonal factors. February is historically the weakest new-auto loan growth month of the year, with seasonal factors typically adjusting -0.68 percentage points from the underlying trend growth rate,” CUNA Mutual reported.

Real Estate Information

Credit union fixed-rate first mortgage loan balances rose 1.3% in February, above the 0.4% increase reported in February 2021, due to historically low mortgage interest rates, CUNA Mutual said.

Credit union fixed-rate first mortgage loan balances rose 17.4% over the last 12 months, similar to the pace set in the year ending in February 2021, the data show.

“With the Federal Reserve expected to raise interest rates this year, expect mortgage interest rates to remain above 5.0% for the rest of the year,” CUNA Mutual forecast.

Savings & Assets

Credit union savings balances rose 1.6% in February, the same 1.6% gain reported in February 2021, due to the seasonal factors of tax refunds and bonuses being deposited in credit union members’ share draft and regular share accounts, which increased 3.3% and 1.9% respectively, according to the Trends Report.

“We forecast credit union savings balances to grow 5% in 2022, below the 7% long-run 30-year average, and significantly below the record-setting 23.3% growth rate set in September 2020,” CUNA Mutual’s economists stated. “Credit union savings growth will slow during the next two years. This is largely payback for the torrid deposit growth of the past two years, fueled by COVID’s impact on consumer spending. There is also the possibility that members holding high-balance non-maturity shares and deposits (particularly money market accounts) might find yields on money market mutual funds attractive as the year progresses.”

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Bipartisan Bill Would Expand Federal Credit Union Investment Authority

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Liquidity Resources

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Just What Is Our Gross Domestic Product

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Senate, 51-47, has confirmed John Crews to the NCUA board

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Become your kid's mortgage lender

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This will be a week that has the attention of many economists.

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